Industry Voices | The In-Cabin Experience and the Auto Industry’s Future

When automakers release upgraded models of their vehicles, there tends to be a focus on shape, size and driving capability; exterior changes that grab the consumer’s eye right away. However, as people spend more time in their cars and become increasingly reliant on technology, features within the interior cabin such as device connectivity and entertainment are becoming more and more sought after by buyers.

New-car buyers expect the inside of their vehicle to be as functional as their home or office, with state-of-the-art technology to keep them connected on the go. A recent Salesforce study found that drivers care about a car’s connected features nearly as much as the brand of the car itself. By prioritizing rich, connected in-cabin experiences, automakers can realize increased demand, affinity and revenue. 

Diverse Cabin Experiences

Some of the in-cabin experiences being offered by automakers today are improvements of longstanding features. For instance, many native GPS systems now connect wirelessly to phone navigation apps and provide “point of interest” recommendations. Existing entertainment options, such as radio and rear-seat screens, are being upgraded for a new era, with streaming video options and high-end sound systems connected directly to Spotify and Apple Music. Certain vehicles are even beginning to provide in-cabin gaming options to tide over passengers during long drives.

In addition to typical sensors such as backup cameras, some vehicles now feature interior cameras and other means to sense driver conditions, such as tiredness and attention levels, in real time. Further monitoring options can help reduce the ongoing problem of theft attempts and keep both the driver and their passengers safe.

Truly new and modern cabin features are also becoming commonplace: take payments, for example. Select cars now offer the ability to seamlessly pay for parking, tolls and fuel or charging from the connected vehicle, often without having to exit or touch a card or mobile app. AI is quickly emerging as the next major trend influencing cabin features, through connected voice assistants and intelligent updates on vehicle status and health.

Driving Continuous Returns   

Adding in-cabin features has a clear opportunity to make a brand’s cars more popular among buyers. However, the benefits extend beyond a onetime sale. Currently, original equipment manufacturers generate most of their revenue through car sales and a small amount from selling parts. By offering connected cars, they can drive additional revenue by selling on-demand features and subscription-based services, therefore increasing the overall customer lifecycle monetization. For instance, an automaker might sell a subscription to stream premium music in the car or access a voice assistant. 

However, there is a long road ahead when it comes to successfully upleveling the in-cabin experience. One of the main roadblocks today’s automakers currently face is around ecosystem integration, as most OEMs do not have a direct relationship with the end customers to present them with one unified system. OEMs are looking to solutions in the vein of Apple’s ecosystem, which can be difficult to pull off and still requires opening their system landscape to properly integrate with third parties.

There is no one-size-fits-all approach to in-cabin features. Different markets have varying expectations derived from cultural, technological and regulatory requirements. There is also a need to vary prices of different offerings based on their value in each market.

Cabin Experience Today and Tomorrow

Of the many in-cabin features I have worked with automakers to implement, one that is having a positive impact now is connected apps. For instance, since Swedish-Chinese carmaker Lynk & Co was formed as a joint venture between Geely Auto Group and Volvo Car Group, its app has been a cornerstone of its vehicle offerings. The app does everything from unlocking the door to setting the user’s preferred cabin temperature before entering. The app innovations are only the first step in an increasingly smart, personalized cabin experience.  

With connected cars forecasted to make up 95% of all vehicles on the road by 2030, it is clear that consumers and the industry at large are focused on vehicles’ interior setup. Car brands need to have a vision for these experiences in order to keep up, and can look forward to new revenue streams if they handle it right. As new features, many powered by AI, continue to increase in popularity, automakers already focused on innovation can rest assured that they will be ready.